Stocks vs real estate


#642

Maybe East Palo Alto.


#643

https://www.wsj.com/articles/a-quant-king-finds-stock-picking-can-be-difficult-1541707293


#644

Computer helps human to decide, but full automation needs fool-proof algorithm and rigorous testing the software.


#645

Yes, let’s rehash and beat on a very decomposing dead horse some more…


#646

#647

https://www.quora.com/Why-do-so-many-people-invest-in-real-estate-even-though-stocks-have-higher-returns-in-the-long-term-are-cheaper-to-buy-and-require-no-maintenance-costs

Not sure the best answer answered the originator question. Thought he is referring to rental rather than primary. Do we compare buying primary vs investing in stocks? Most of us buy primary for our needs not as an investment.


#648

https://www.quora.com/Which-is-a-better-investment-idea-Real-estate-investment-vs-stock-market

Everyone overestimates the rental income and underestimates repairs and other costs.

I believe the consensus was that the real average rate of return is about 5% annually.

Renovating properties carries its own ranks, whether you are selling (flipping) or renting. This takes time and skill to do right. You have to be able to judge the market really well and hold down expenses for the repairs/renovations, transaction costs, etc. Some of the overinflated numbers you hear of people bragging about flipping houses doesn’t include all the labor costs that the investor did themselves. It’s literally a full time job. The average reported gross returns are about 30%. Net returns (what’s left after all the labor, materials, fees, commissions, etc are paid) are much smaller, likely single digits. I’ve seen lots of people go bankrupt doing this.


#649

Primary should be for needs not investment unless you plan on fixing up and taking advantage of the tax free gains every 2-5 years. Then you have to buy for need and investment.


#650

Primary is not an investment IMO. Primary is a lifestyle choice.

Something that always irks me about these debates is - why are people comparing stocks with actively managed real estate?

The better comparison would be investing in private businesses and actively managed real estate, OR stocks vs REITS. But it doesn’t make for as “newsworthy” headlines does it…


#651

Stocks are unpredictable and the little guy has no control. Now is an obvious time to show the difference. Stocks are dropping and many will panic and sell. Hard to do in RE, which is a more stable investment.
Stock pickers on this forum are going through gut wrenching highs and lows in this crazy market.


#652

Rent is considered as a passive income. It means that rental property is nowhere as intensive as an active business.


#653

Really. I got Aapl at less than $10. Do I really care if it’s $100 or $200?

You can say the same about fb, which I got for $38.

You can say the same about Tsla, which I got for $35.

I wonder how long it would take for me to achieve that kind of return in real estate? Probably the entire life span of elt1.


#654

What happen to your promise to sell to me at $88?


#655

Why so greedy? While I got Aapl for less than $10, you got it for less than $1.


#656

This early 60s guy said both stock and RE is no good. “…saving in something safe is a sure bet.” :thinking:


#657

Properties require maintenance. Renters need vetting, when they leave and damage things you need to fix them, then find new renters. Property taxes need paying, accounting needs to be done. This sounds very active to me.


#658

So some random internet guy with no credibility is bitter about his investment ignorance? BTW, what is safe?


No more stocks for me. Just real estate investments
#659

PM can handle this for you


#660

Sure, let’s rebeat a very dead horse…


#661

I got my first exposure to both stocks and real estate in 2008 at the age of 13.

Can deduce Logan Kane is 23 now. Any1 here younger than him?

Who Real Estate Works Best For

Real estate works beautifully for two groups of people. The first group is six-figure earners with few assets who are able to borrow heavily and build wealth via home equity.

The second group is the $500,000 to 10 million net worth crowd who can benefit the most from government subsidized mortgages and use real estate to create permanent financial independence. More on this later.

Presume that is almost everyone in this forum.